McMoRan Exploration Co. said Tuesday that its Blueberry Hill deep gas exploration well in the Gulf of Mexico has reached a vertical depth of 23,630 feet.

The New Orleans energy producer announced last month that the well, located in approximately 10 feet of water, may have encountered a zone of energy-producing sands.

It plans to deepen the well to 24,000 feet before evaluating just how large the find might be.

Signs of the energy-producing sands show that the well "has the potential to be a pretty nice discovery," Richard Tullis, an energy analyst with Capital One Southcoast in New Orleans, said Tuesday.

But until it can be fully evaluated, Tullis expressed a guarded optimism, saying that the process will provide "a more definitive confirmation on the quality of the sands."

A McMoRan spokesman, Bill Collier, said the company did not have a timeline for the evaluations, which would start after it has finished deepening the well. Drilling on Blueberry Hill started April 26.

McMoRan, which focuses its operations in the shallow waters of the Gulf, has not been impacted by the drilling moratorium issued by the Department of Interior in response to the oil spill that was triggered by the April 20 explosion of the Deepwater Horizon drilling rig.

The company has said it is complying with enhanced safety measures enacted for all operations in the Gulf in the wake of the incident.

Last month, McMoRan announced that it had cut its losses during the second quarter while moving ahead with several drilling projects, including its Davy Jones well, which may be one of the largest discoveries in the Gulf's shallow waters in decades.

McMoRan stocks rose Tuesday after the announcement, up 5.02 percent to $11.30.

Richard Thompson can be reached at rthompson@timespicayune.com or 504.826.3496.